NHS funding pressures set to increase

New research announced today (Friday 23 January 2015) by independent health care charity the Health Foundation has predicted funding pressures on the NHS will increase to £65bn above inflation by 2030/31.

The findings show that the incoming government will have to face the ongoing challenge of sustaining high quality care while trying to balance the health care budget. 

Anita Charlesworth, Chief Economist at the Health Foundation, comments: 'Our analysis shows health funding pressures will continue to grow beyond the rate of inflation and economic growth.

'The projections from our work show the health funding requirement growing by 2.9% a year over and above inflation if productivity growth continues in line with recent trends. This is higher than the expected annual increase in GDP of 2.3%. It amounts to an additional £65bn needed by 2030/31.

'NHS funding will therefore need to grow slightly faster than GDP. We are calling for the next government to establish a public and political consensus on the longer-term funding levels necessary for the NHS. The next government needs to act immediately in order to secure the future of the health service in years to come.'

Above the additional £8bn that NHS England has identified is needed in its recent Five year forward view, the Health Foundation is arguing that the incoming government needs to: establish and resource a ‘transformation fund’ to provide the financial assistance necessary to underpin change; and to commit further annual funding for the NHS above what has already been identified.

The NHS is one of the key issues of public concern in the run up to the general election. Ipsos MORI’s January 2015 political monitor found that ‘health care and the NHS’ was the most important issue for voters ahead of the election, with 46% saying it was a very important issue. This has increased from 26% shortly before the last general election. In part, this reflects the enduring public commitment to the principles of the NHS, but it also reflects the growing evidence and concern about the strains on the service.

View our briefing on NHS funding.

Media contact

Mike Findlay, Media Manager
T: 020 7257 8047
E: mike.findlay@health.org.uk